EU Proposes New iGaming Tax for Online Gambling

European lawmakers are debating a new tax on iGaming. The proposal could place an EU-wide levy on online betting and gaming profits. The idea is gaining traction in Brussels. A note from DLA Piper revealed the plan.

The tax would fund education and youth policies. Victor Negrescu supports the proposal. He serves as Vice-President of the European Parliament. He argues the levy would strengthen EU finances. Supporters make two key points. First, the EU needs new revenue for education. Second, tax rates vary wildly across Europe. Some countries charge 5%. Others charge nearly 40%. This uneven playing field pushes operators toward low-tax bases.

The numbers are significant. Research estimates the online gambling sector at €130 billion in 2022. Current volumes may reach €200 billion. Even a 1% levy could raise tens of billions for the EU budget. However, legal hurdles remain.

The European Parliament cannot create taxes alone. All 27 member states must agree unanimously. One country could block the entire plan. Industry watchers remain cautious. Trial balloons in Brussels often become policy. Budget pressures could drive this forward. Operators face important questions.

Would the EU tax add to national taxes? Or would it replace them? Could companies deduct it locally? How would it interact with existing levies? There is also the compliance problem. Licensed operators might pay more.

Meanwhile, unlicensed sites continue selling into Europe. Without better enforcement, the gap between legal and illegal operators could widen. Europe’s gambling market is massive. H2 Gambling Capital reports €123.4 billion in gross gaming revenue for 2024. Online gaming accounts for €47.9 billion, nearly 40% of the total. Any tax change would have far-reaching effects.